CIA Part 1 - Q21

21. The Standards require that internal auditors possess which of the following skills?

I. Internal auditors should understand human relations and be skilled in dealing with people.

II. Internal auditors should be able to recognize and evaluate the materiality and significance of deviations from good business practices.

III. Internal auditors should be experts on subjects such as economics, commercial law, taxation, finance, and information technology.

IV. Internal auditors should be skilled in oral and written communication.

a. I and II only.

b. I, II and III only.

c. I, II, III and IV.

d. I, II and IV only.

21. Solution: d (I, II and IV)

I. Correct. Internal auditors need to understand human relations and be skilled in dealing with people.

II. Correct. Internal auditors need to be able to understand what constitutes materiality and significance of deviations from good business practice.

III. Incorrect. Internal auditors are not expected to be experts in a wide variety of fields related to their audit responsibilities.

IV. Correct. Internal auditors should be skilled in oral and written communication.